With a multi-month goal of reaching 7,000 total job cuts, disney will begin its second round of layoffs of the year today. The notifications will be delivered to staff until Thursday, culminating in around 4,000 job cuts completed in total by the end of the week, according to company officials.
While Disney’s workforce will be cut by thousands across Disney Entertainment, ESPN and Disney Parks, Experiences and Products (hourly frontline operating roles at parks and resorts will not be affected) and locations from Burbank to New York and Connecticut, there are still more layoffs to come.
According to Disney, a third and final wave of cuts is expected to begin before the summer, bringing the Mouse House to its goal of 7,000 layoffs. (This figure represents 3.2% of Disney’s total workforce of approximately 220,000 people worldwide as of October 1, 2022.)
Details regarding the specific departments and positions affected by the layoffs will come throughout the week.
“These are tough decisions and not ones we take lightly – but each decision has been made with great thought, and we are doing everything we can to ensure this process is conducted with respect and compassion,” co -Disney Entertainment president Alan Bergman and Dana Walden said in a memo to staff Monday. “Leadership teams have worked diligently to define our future organization, and our highest priority has been to get it right, rather than to do it quickly. We recognize that this has been a time of uncertainty and thank you all for your understanding and patience.
Disney first announced its extensive redundancy plan in February, shortly after Bob Iger returned as CEO after Bob Chapek was ousted. Iger was quick to implement a cost-cutting strategy, with the first round of staff cuts beginning March 27.
The second round of layoffs which begins today would include “several thousand additional workforce reductions” compared to the first wave.
The layoffs are part of Disney’s effort to achieve approximately $5.5 billion in savings. Of this amount, $2.5 billion represents “non-content costs” (including labor costs) and $1 billion of these targeted cost reductions were already underway in February, iger said. Disney is targeting a $3 billion annualized reduction in non-sports content costs, which should be achieved over the next few years, Disney Chief Financial Officer Christine McCarthy said.
See Bergman and Walden’s Monday memo to employees regarding the second round of layoffs below.
As you all know, a few weeks ago the company began notifying employees whose roles are impacted as part of our overall business realignment and cost reduction efforts. We wanted to share that notifications will continue in many areas of the business over the next few days. Additionally, the restructuring of various businesses will continue over the next couple of months, and we anticipate there will be further impacts before the summer, as previously reported. Each team is at a different place in this process, and your leaders will soon be sharing more context for your group.
These are tough decisions and not ones we make lightly – but each decision has been made with great thought, and we do everything we can to ensure this process is conducted with respect and compassion. The leadership teams have worked diligently to define our future organization, and our highest priority has been to get it right, rather than get it done quickly. We recognize that this has been a time of uncertainty and thank you all for your understanding and patience.
It’s a time of transition for Disney, and these changes affect everyone, whether your role is impacted or not. We are committed to supporting you throughout this period and encourage you to reach out to your manager or HR partner with any questions or for guidance as needed.
While we are confident that these efforts will better position us for the future, we realize that it is all having an impact. We want to acknowledge the impact of this moment and simply reiterate our appreciation for all of you and the passion and dedication you have brought to the work we do every day. And for those who will leave the company, know that your contributions are valued and appreciated – you all played an important role in making Disney what it is today.
Alan and Dana